Welcome to the second passive income stream called Amazon FBA.
The reason I have this second is that, in my opinion, it’s probably the fastest way to build a six-figure online income (If you have capital).
The reason is that you’re able to piggyback off Amazon’s brand and sell products to their customers.
If you do have a bit of money to get started with, this is an awesome way to build an epic business that gives you the ultimate time and money freedom.
Watch this video for full details:
What Is Amazon FBA?
FBA is basically where you import a product, have it stored in Amazon’s warehouse, list it on their website, and anytime one of your products is sold, Amazon will ship it for you.
It’s pretty much the ultimate passive income machine.
All you really have to do is research a profitable product with relatively low competition, contact a factory that will make it for you, create your listing, and sit back and leverage the power of Amazon!
The great thing is that it doesn’t take any previous marketing experience or any computer skills to get started.
If I had to pick 1 business model to stick with for the next 10 years, it’d be this one for sure.
The only negative is that it does take capital to get started.
How Much Does It Cost To Get Started?
The cost to get started will be anywhere from 1000-2000.
It all depends on the type of product you plan on importing and the quantity.
It will also take a bit of money to get your logo and packaging made.
You’ll also need a bit if you decide to do any paid promotion on your products (which you should).
Timeframe To Start Earning
The average timeframe to start earning (if you’re brand new) would be about 90 days from now.
The reason is that you have to do quite a bit of research to find the perfect product and negotiate with the supplier.
It’s gonna take anywhere from 4-6 weeks to get your product created and shipped to Amazon.
Once you fully understand the process and have your products and suppliers sorted out, you can literally just send them an email to create and ship more of your product.
But if you’re new, it’s gonna take a bit to learn the process.
But as an average, you can expect to start making sales within about 3 months.
The potential income for FBA is $1,000,000 per year.
It’s not going to happen overnight, but if you consistently stick with it by importing new products, and improving and marketing existing products, it is possible to get there.
How To Get Started
Step #1: The first thing you’ll need to do is go to the Amazon best sellers page and write down a list of good selling products.
Go through each category as deep as you can (subcategories in kitchen, sports, garden, etc) and look at the top 100 best selling products.
It’s usually a bad idea to try and brainstorm good products because hundreds of other people are probably thinking the same thing…
That means too much competition.
The best products are normally the most random and boring ones.
I’d recommend you avoid seasonal or electronic products.
Step #2: Once you have a list of potential products, the next thing you’ll have to do is make sure it’s profitable and doesn’t have too much competition.
First, take the primary keyword of the product (wooden spatula, pool skimmer, etc) and type it into the search.
Look into each product listing, scroll down to “product information”, and look at the best sellers rank.
Anything under 20,000 is good.
Make sure the majority of the first page listings have a best sellers rank between 1 and 20,000.
Step #3: If you’ve done step #2 and the majority of the products are actually profitable (under 20,000 BSR), you’ll then want to make sure it’s not too competitive.
You could have the most profitable product out there, but if it’s too hard to rank on the first page, nobody will buy it.
Look at the first page listings and make sure there are at least 5 products that have 50 reviews or less.
If this is the case, you may have found a winner.
Note. This is the most important step, so don’t rush through it.
Step #4: Next thing you’ll want to do is go to Alibaba.com and type in your product.
You’ll then get a list of manufacturers who can create your product.
Simply contact them and see what the minimum order quantity and price per unit is.
Normally you can negotiate them down a lot.
Aim for 250-500 units for your first order.
Step #5: Take that information and go here to calculate whether or not it’s gonna be profitable.
It might be a bit complicated, but there’s an easier way to figure this all out automatically (which we’ll get to in a sec).
There’s no point importing a product if we don’t make anything right?
Step #6: If it’s actually profitable to bring in, request a sample and test out the product.
The first 2 products I found that were highly profitable were a pool skimming net and bunion correctors.
Completely random products but that’s a good thing.
Generally means lower competition and more $$.
Step #7: If the sample is high quality and you’re happy with everyone, the next step is to start your trial order.
Put a 30% deposit down, give the supplier your logo, barcodes and packaging style, and they’ll take care of the rest.
Step #8: Go to Sellercentral.Amazon.com and create your seller account.
Create a new listing and they’ll send you the shipping address.
You’ll then tell your supplier where to ship the finished product.
Once your product arrives in the Amazon warehouse and your listing is set up, you’re good to go.
Step #9: Start promoting your product and getting reviews.
Step #10: Start collecting $$.
What’s The Best Way To Get Started?
If you’re really serious about building a 5-7 figure physical products business on Amazon I recommend you start here and watch this webinar.
It’s done by the guys at Marketplace Superheroes (Robert & Stephan) and pretty much everything I know was from them. Not only from the step by step training but also the bonuses you get…
You also get access to the software that does all the calculations for you (profitability, competition, and if you should actually import a product or not) and have access to them in the Facebook group to get any questions answered.
It’s one of the most in-depth programs I’ve been through and highly recommend you get some sort of training for FBA because there’s so much that could go wrong (eg. picking the wrong product and losing money, having the wrong bar codes on your products, etc).
With Kindle or affiliate marketing, you could get away with trial and error but definitely not with this.
What I recommend is CLICKING HERE and watching their webinar on how to build a 5-7 figure physical products business!
Even if you don’t join the program…watch the webinar.
P.S. If you decide to join through the link above I’ll include a free 1-hour coaching call to help you through the process. Just screenshot your receipt and shoot me a message here on Facebook.
It’s really that simple.
Of course, it takes time to fully understand the process, but that’s the basic fundamentals on how to get started.
You can figure it out on your own by trial and error or get a step by step training program that walks you through the entire process.
That’s what I did but it’s completely up to you.
Hope you enjoy, and let me know if you have any questions!
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